Life Insurance Who Needs It And How Much Do You Need

Your friendly, neighborhood life insurance , Six Reasons Why Real Estate Investors Should Buy In December agent is most likely to answer this question with the wor'everybod'

The fact is, not everybody does need life insurance. , Second Mortgage How Do You Even Qualify If you don't have a family, you probably don't need life insurance , An Answer To Your Financial Crunch Commercial Bridging Loans unless, of course, y're a really nice person and just want to leave some money , Financing Sources And Types To Ensure Successful to a friend or a charity.

If you do have a family, the question isn't do you need life insurance. , Trading Expert Discovers Ways To Beat Stock Market Odds With Money Management The question is how much do you need?

A life insurance , Bad Credit Used Car Loans 3 Tips For Getting An Auto Loan With Poor Credit sales representative may want you to apply some kind of formula. In years gone by, he or she might have told you that you need to buy insurance , Six Reasons Why Real Estate Investors Should Buy In December equal to four times your annual salary. So, if your annual salary is $50,000, you might have been told you need at least a $200,000 policy. Today, the same agent might tell you that you need eight times your annual salary or a $400,000 policy.

In most cases, this is probably too simplistic an approach, as it tends to assume that you are your family's sole provider.

Today, there are a number of other factors that should be taken into consideration. Does your spouse work or is he/she a stay-at-home mom or dad? Are you a single mother or father? And where does that put you? How old are your children? Will your surviving spouse be raising kids for three years or 15? If your spouse works, how much does he or she earn? If something should happen to you, is there family nearby that could help raise your kids or is the nearest family 1,000 miles away?

Let's take a hypothetical example. Jim W. is 45 years old, earns $75,000 a year and has two kids age 15 and 17. Jim's wife, Martha is 43 and earns $50,000 a year. Jim and Martha believe their kids are college material. How much life insurance , Getting Pre Approved For A Loan does Jim need? Let's assume $25,000 a year times the two boys, times four years. That's $200,000. Jim also wants to make sure Martha lives comfortably for the rest of her working life and figures , High Flying Stock Pacific Ethanol Inc she'll need an additional $25,000 a year to do this. Multiply this $25,000 by 22 and that's $550,000. Add this to the cost , How To Find Good Balance Transfer Cards of the boys' college, and Jim needs at least a $750,000 life insurance , Car Insurance No Claims Bonus Explained policy ... and that doesn't include anything for Mart's retirement! , Advanced How To Credit Repair Tips 2 Of 3

Now, compare this to Beth who is the single mother of a boy, Robbie, age eight and a girl, Kinsey, age 12. How much insurance , Life Getting The Best Rates does Beth need? There's no spouse but if anything happens to her, the kids will go to her sister, and the sister will need financial , Internet Banking Which Web Bank Is Right For You help. So, assume $10,000 a year to the sister for 16 years -- $160,00' plus college for the kids at $200,000. This adds up to a policy of maybe $360,000. See the difference that circumstances can make?

Before you purchase , Benefits From Small Business Credit Cards a policy, sit down and figure , Decision With A Mortgage Calculator When To Foreclose out who will need to be taken care of, for how long they will need the help and, realistically, what that help should consist of. If you die this should not be like winning the lottery for your survivors. Don't buy , Investing In Australian Aboriginal Art so much insurance , Need A Home Improvement Get A Loan that you will be really strapped for all those years before you pass on.

The next step is to do some comparison-shopping. Different insurance , Tips Regarding Interest Only Loans companies often quote different rates , Getting Pre Approved For A Loan on just about the same coverage as they tend to rate , Student Loan Debt Consolidation Students Cannot Afford To Lose Sleep Over Debts risks differently. You should also look at the cost , Info About The Credit Repair Businesses of term vs. cash value life insurance. , Business Credit Cards Can Make You Money Many experts believe that if y're young, with young kids, your best bet is a term policy as it costs , Tips Regarding Interest Only Loans less, yet can offer good coverage. For example, if you're 35 and in good health, you can probably buy , Car Insurance No Claims Bonus Explained a $500,000, 10-year level term polity for less than $300 a year. And a 20-year, level-term policy might cost , Rss Syndication May Change The Way You Apply For A Credit Card you no more than $400 a year.

You might also save money , Info About The Credit Repair Businesses on the term insurance , Finding The Best Arizona Home by buying , Bad Credit Used Car Loans 3 Tips For Getting An Auto Loan With Poor Credit more than one policy. For example, if you have two children, one age 12 and one age eight, you might consider buying , No Faxing Fast Cash a 10-year, level term policy to take the 12-year old through college, and a 20-year term policy to cover the eight year old through college.

Finally, you can get quotes on term insurance , Building Home Equity And Saving and even buy , Car Insurance No Claims Bonus Explained it without ever seeing a life insurance , Trading Expert Discovers Ways To Beat Stock Market Odds With Money Management agent. There are a number of web sites where you can do this, including quickquotes.com, reliaQuote.com and intelliquote.com.

It is important to understand that the quotes available from these sites are just preliminary quotes. The insurance , How To Profit From Ben Bernanke A Volatile Federal Reserve company you choose will not provide a firm quote until you have provided all requested information and, in most case, have taken a physical. The good news is that the physical will be done in your home , Debt Consolidation Loans For People With A Bad Credit History and at your convenience.

Cash value life insurance , Car Insurance No Claims Bonus Explained is a much more complex issue. The best way to get information on it is to sit down with a good, experienced agent who can explain the alternatives available and the costs , Decision With A Mortgage Calculator When To Foreclose and benefits of each.

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